Initial Coin Offerings remain a very popular way for start-ups to raise funds. Unlike traditional crowdfunding campaigns, ICOs are less regulated and therefore prone to fraud and other manipulations. While many credible blockchain start-ups initiate an ICO because they need to raise funds and achieve their goals, there are some fake projects that turn out to be scams and frauds.
Here are three main features of a fraudulent ICO:
- Bad online representation
No scammer wants you to know them personally. This means that you will not find any information about the team, advisors or partners of a fake ICO on their website. Meanwhile, on a trusted ICO website, you can view all the information about the team members with links to their social media channels.
As for PointPay, it has an AA rating on ICOTOP rating agency, which is the highest. Moreover, PointPay is in the top of ICOBENCH rating agency and many others.
2. No whitepaper or plagiarized whitepaper
Every ICO needs its own whitepaper if it wants to succeed.
A whitepaper is a document that outlines the ICO’s main goals, the problems it aims to solve, and its product’s detailed descriptions. Can the company run a successful campaign if it does not make enough effort to write and present a proper whitepaper? Certainly not.
3. Unrealistic promises and false profits guaranteed
Every ICO must have something to promise for future investors to make their investments more attractive. But if they promise you’ll become a millionaire by investing only $100, run away! That’s a scam!
As a trustworthy ICO Pointpay provides the team information and a detailed whitepaper.
Check out our website for more information.
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